Store faced struggle in current climate

IT was a fourth generation family owned store which increased its turnover year on year, peaking at approximately £24 million in 2018.

However, in line with many retailers in the current climate, Watt Brothers increased revenue but it did not translate into profit as they have faced significant margin challenges in recent years.

Administrators KPMG, who were appointed yesterday, said the strain on margins, along with increased competition from online and new discount retailers resulted in the firm generating a loss in 2018.

In a statement, KPMG said Watt Brothers will continue to trade from the Glasgow store, where a stock clearance event will begin today.

A further 11 stores are currently operated across Scotland, with

Other stores in Clydebank and Robroyston are also believed to have been closed, with 22 and 25 workers respectively being let go.

The owner of the four-storey Sauchiehall Street premises announced in May 2018 possible plans to close the city centre shop and relocate the business elsewhere in the city.

Now, just less than a quarter of the company’s 306 staff remain as administrators look for a buyer.

Blair Nimmo, joint administrator and UK Head of Restructuring at KPMG, said: “Despite the directors’ tireless efforts to increase margins, cut costs and recapitalise the business, Watt Brothers continued to incur trading losses as a result of the well-publicised challenges being experienced across the retail sector.

“Ultimately this has led to the unfortunate demise of a well-known and highly-regarded business.

“We will be holding a stock clearance event, and are grateful to the remaining staff for their efforts and assistance at this difficult time.

“We are working closely with Skills Development Scotland, via their PACE team, and JobCentre Plus to support the staff who have been made redundant.

“We would encourage any party who has an interest in acquiring the business and its assets to contact us as soon as possible.”